Home - CBSNews.com | Kevin Warsh is now leading the Fed. His main challenge is a doozy.
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Kevin Warsh, newly sworn‑in as Federal Reserve chair, faces an immediate test as economists predict the April personal consumption expenditures price index will rise 3.9% year‑over‑year—the highest reading for the Fed’s preferred inflation gauge since May 2023—driven in part by higher oil prices. With inflation at its highest level in nearly three years, Warsh must balance President Trump’s push for quicker rate cuts against the need to curb price growth, while also pursuing a “reform‑oriented” agenda that would reshape the Fed’s operations and communication. Analysts warn that steady labor‑market conditions and persistent inflation risks could force the Federal Open Market Committee to consider another rate hike as early as its June meeting, and a December hike now carries a 40% probability. Warsh has pledged to keep the Fed “strictly independent,” but must convince the 12‑member policy committee to act on inflation despite political pressure, making his first months a fraught mix of reform goals, inflation‑fighting mandates, and the challenge of maintaining central‑bank autonomy.
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